By Joshua Tosin Ogunsakin 
The National Bureau of Statistics (NBS) says inflation figure dropped to 20.12 percent in the month of August.
A report released on Monday said food inflation also dropped to 1.65% when compared to the 3.12% recorded in the month of July.
It attributed the decline to the drop in the average prices of rice (Imported), rice (local), guinea corn flour, maize flour sold loose, guinea corn (sorghum), millet, Semolina, Soya milk etc.
The report stated that the August figure was 1.76 percent drop when compared to the inflation rate of 21.88 percent in July.
“On a year-on-year basis, the Headline inflation rate was 12.03% lower than the rate recorded in August 2024 (32.15%). This shows that the Headline inflation rate (year-on-year basis) decreased in August 2025 compared to the same month in the preceding year (i.e., August 2024), though with a different base year, November 2009 = 100.”
“On a month-on-month basis, the Headline inflation rate in August 2025 was 0.74%, which was 1.25% lower than the rate recorded in July 2025 (1.99%). This means that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025.
“The Food inflation rate in August 2025 was 21.87% on a year-on-year basis. This was 15.65% points lower compared to the rate recorded in August 2024 (37.52%). The significant decline in the annual food inflation figure is technically due to the change in the base year.
“On a month-on-month basis, the Food inflation rate in August 2025 was 1.65%, down by 1.47% compared to July 2025 (3.12%). The decrease can be attributed to the rate of decline in the average prices of Rice (Imported), Rice (local), Guinea corn flour, Maize flour sold loose, Guinea Corn (Sorghum), Millet, Semolina, Soya milk etc.”
“The average annual rate of Food inflation for the twelve months ending August 2025 over the previous twelve-month average was 25.75%, which was 11.24% points lower compared with the average annual rate of change recorded in August 2024 (36.99%).”